Saturday, December 1, 2012

Sunil Mittal promoted Bharti Group will come up with an Initial Public Offering (IPO) next week which is set to become the biggest IPO in last two years. Bharti Infratel Ltd. is expected raise as much as Rs.4,530 crore through the divestment of a 10% stake. According to Bloomberg, the largest IPO prior to this was of state-run Coal India Ltd, which raised some $3.5 billion in October 2010

Currently, Temasek Holdings Pte. Ltd, Goldman Sachs, Citigroup Inc., KKR and Co. are major holders in the company. The MD of the Company Akhil Gupta believes the IPO would hit the streets at the right time. “The timing is perfect for a number of reasons,” said he adding
“We are not a start-up dotcom company. We have a perfect business model
with predictable revenues and globally comparable size.”

Bharti Infratel IPO would entail offer of 189 million shares in a price band of Rs.210/- to Rs.240/- each. The IPO would be open between December 11, 2012 and December 14, 2012. Credit Rating Agency CRISIL has assigned a rating of IPO Grade 4/5 [IPO Grade 4 out of 5] to the issue indicating that the fundamentals of the
company are above average compared with other listed companies in India